Industrial property flipped to drug manufacturer

Nov. 24, 2013

Updated Nov. 22, 2013 4:51 p.m.

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Costa Mesa-based Burke Real Estate Group Inc. has sold 536 W. Vanguard Way, a 21,432-square-foot manufacturing building, for $3.1 million. The firm renovated the property after buying it for $1.8 million in July. COSTAR GROUP INC.

Costa Mesa-based Burke Real Estate Group Inc. has sold 536 W. Vanguard Way, a 21,432-square-foot manufacturing building, for $3.1 million. The firm renovated the property after buying it for $1.8 million in July. COSTAR GROUP INC.

A local developer has flipped an industrial property in Brea just four months after buying it.

Costa Mesa-based Burke Real Estate Group Inc. has sold 536 W. Vanguard Way, a 21,432-square-foot manufacturing building, for $3.1 million. Built in 1974, the property includes a small office component and sits on about 1 acre.

Burke Real Estate Group paid $1.8 million for the building in July, when the property “was in a depreciated state,” said Shawn Kelter, a broker with Insight Commercial Property Advisory.

The developer invested an undisclosed amount in an extensive rehab effort, replacing the roof, painting inside and out, upgrading the office space and fixing the air conditioning.

“The rehab basically addressed most all of the depreciable components of the building construction,” Kelter said.

“The building is in very good shape. It's not new … but it's as close to a new building as you're going to get,” he said.

Kelter and Karl Heim of First Team Commercial represented the seller.

The buyer, HBT Labs Inc., plans to use the building to manufacture generic drugs.

John Collins, a broker with Lee & Associates who represented the company, said many of the available industrial buildings in North Orange County are “tired and beat up,” so the buyer was glad to find a property that had been renovated.

“The developer made it easy for them,” he said.

Investor grabs food facility

A food manufacturing facility in Buena Park has traded hands for $5 million.

The 44-year-old building features about 23,000 square feet of freezer space.

The buyer, identified as 6220 Descanso Holdings LLC, bought the property as a long-term investment with the hope that SunOpta will renew its lease, which runs through 2015, said Tim Cronin, a Lee & Associates broker who represented the buyer.

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